US aggregate demand for clothing and shoes: effects of non‐durable expenditures, price and demographic changes

Kim, Ki-Sung

doi:10.1046/j.1470-6431.2003.00291.x

Cited by 10 publications

(11 citation statements)

References 24 publications

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“…A survey of studies published in 2000 by Cheng indicated U.S. expenditures on clothing are typically inelastic with respect to income. Another survey (Kim, ) noted nearly as many studies finding elasticities above 1 as below. An international cross‐sectional study found a narrow range of income elasticities for clothing expenditures, from 0.93 in Tanzania to 0.90 in the United States (Seale et al., ).…”

Section: Resultsmentioning

confidence: 97%

“…MacDonald's () estimates for these same markets ranged from −0.45 to −0.89. Surveys of studies of consumers’ response to clothing price changes have found a wide range of elasticities, with Cheng () citing a range from −0.19 to −1.96, and Kim () citing a range of −0.79 to −1.75. Seale et al () estimated a range from −0.8 in low‐income countries to as high as −0.7 in high‐income countries.…”

Section: Resultsmentioning

confidence: 99%

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Toward a consumer economy in China: implications of changing wage policies for U.S. cotton exports

MacDonald

Pan²,

Hudson

et al. 2013

Agricultural Economics

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The effect of a Chinese minimum wage increase on China's textile market as well as on the world cotton market is evaluated. Based on a Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) model of China's textile demand, the results suggest that the income elasticity for textiles is around 0.6 in China, and that apparel is less price responsive than home textiles and other textile products. Simulation results suggest that a minimum wage increase would raise Chinese domestic textile consumption and lower Chinese textile exports. Most of the decline in textile exports by China is offset by expansion in other countries' domestic textile production and results in a slight increase in world cotton mill utilization and higher clothing prices.JEL classifications: Q17, Q18, R21, R34

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Section: Resultsmentioning

confidence: 97%

Section: Resultsmentioning

confidence: 99%

Toward a consumer economy in China: implications of changing wage policies for U.S. cotton exports

MacDonald

Pan²,

Hudson

et al. 2013

Agricultural Economics

View full text Add to dashboard Cite

show abstract

“…The κ jk parameter also estimates the effects of dummy variables on the expenditure share of each consumption item. The elasticities for the LAIDS model are expressed as follows (Buse, 1994;Kim, 2003;Moschini, 1995):…”

Section: Proposed Demand Model and Estimation Methodsmentioning

confidence: 99%

“…Interestingly, Fan et al (1996), using an AIDS model, estimated the income elasticity for apparel to be 1.46 and the own price elasticity to be −1.75, suggesting that apparel is a luxury and is very price elastic. Kim (2003) also conducted a study on clothing and shoe demand analysis with the AIDS model. In the result of the study he mentioned that total non-durables expenditure elasticities of women's and children's clothing, men's and boys' clothing and shoes are 1.16, 1.1 and 1.11; the price elasticities of them are −0.74, −0.8 and −0.39 respectively.…”

Section: Studies On Demand Analysis For Clothingmentioning

confidence: 99%

“…Kim's work (2003) is a study on structural changes in the demand for clothing and shoes. Albeit the US cases, Kim (2003) conducted the demand analysis for those items along with the various demographic variables such as median age and ethnic composition of the US population as well as a dummy variable for World War II. The results of his study show that, among the demographic variables examined in the study, the median age and non-white population were significant variables affecting the US aggregate nondurable expenditure allocation on men's and boy's clothing and shoes.…”

Section: Studies On Demand Analysis For Clothingmentioning

confidence: 99%

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Demand Analysis of Clothing and Footwear: The Effects of Price, Total Consumption Expenditures and Economic Crisis

Kim¹

2012

Journal of the Korean Society of Clothing and Textiles

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This study investigates the effects of changes in price, total consumption expenditures and economic sitations on Korean household demands for clothing and footwear using time-series data. The clothing and footwear category was reclassified as clothing, footwear and clothing services items for the demand analysis. This study utilized the Linearized Almost Ideal Demand System (LAIDS) model to analyze household demand. The results indicate that price and total consumption expenditures are significantly related to Korean household consumption expenditure allocations for clothing and footwear items. The effects of the IMF bailout crisis in 1997 and the global financial crisis in 2008 on household expenditure shares for clothing and footwear items were very weak and statistically insignificant. All the demand elasticities were estimated with respect to total consumption expenditures and prices. Clothing was expenditure elastic (greater than one) and other items were classified as inelastic. All the own price elasticities of demands were negative (other than clothing). Through the estimations of cross price elasticity the relationships between the demands for items and other item prices were evaluated (i.e., substitutes and complements).

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Chinese domestic textile demand: where they buy does matter

MacDonald

Pan²,

Hudson

et al. 2013

China Agricultural Economic Review

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Purpose -The purpose of this paper is to examine the effects of distribution channels on demand for apparel, home textiles, and other textiles (including shoes) in urban China. Design/methodology/approach -The estimation procedure used in this study is implemented in three steps: first, the price/unit value information is estimated; second, the parameters for a set of demand systems are estimated; and third, the J-test and likelihood ratio testing are used to determine the most suitable model for the data set. Findings -The results indicate that households spend more on apparel than home textiles and other textile products if they purchase textile products from small stores. It also indicates that they would spend more on home textiles and other textiles if they purchase from chain stores and supermarkets. Originality/value -The estimation of Chinese textile consumption presents a significant challenge to both academic researchers and industry, due to China's large population, income inequality, different consumption channels, and other related issues. First, the results presented in the paper provide a clear indication for textile producers, exporters, and others to choose their distribution channels to target specific customers; second, the disaggregated textile expenditure and price elasticity estimates from this article can be used in various analytical procedures (i.e. simulation models) to evaluate the welfare effects of domestic policies and international trade policies. Quantification of the welfare impacts of domestic policies and international trade policies would be more meaningful if disaggregate textile elasticity estimates are used in simulation models.

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US aggregate demand for clothing and shoes: effects of non‐durable expenditures, price and demographic changes

Cited by 10 publications

References 24 publications

Toward a consumer economy in China: implications of changing wage policies for U.S. cotton exports

Toward a consumer economy in China: implications of changing wage policies for U.S. cotton exports

Demand Analysis of Clothing and Footwear: The Effects of Price, Total Consumption Expenditures and Economic Crisis

Chinese domestic textile demand: where they buy does matter

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